Honda 2015 Annual Report Download - page 28

Other Regions
In Other Regions, sales revenue decreased by ¥62.1 billion, or 6.1%, to ¥950.3
billion from the previous fiscal year, due mainly to a decrease in sales revenue in
the Automobile business and Motorcycle business and negative foreign currency
translation effects. Operating profit increased by ¥2.0 billion, or 5.5%, to ¥40.1
billion from the previous fiscal year, due mainly to continuing cost reduction, which
was partially offset by increased selling, general and administrative expenses and
negative foreign currency effects.
Research and Development
The Company and its consolidated subsidiaries use the most-advanced technolo-
gies and conduct R&D activities with the goal of creating distinctive products that
are internationally competitive. To attain this goal, Honda’s main R&D divisions
operate independently as subsidiaries, allowing engineers to pursue their tasks
with significant freedom. Product-related R&D is spearheaded by Honda R&D Co.,
Ltd. in Japan; Honda R&D Americas, Inc. in the United States; and Honda R&D
Asia Pacific Co., Ltd. in Thailand. R&D on production technologies centers around
Honda Engineering Co., Ltd. in Japan and Honda Engineering North America, Inc.
in the United States. All of these entities work in close association with our other
entities and businesses in their respective regions.
Total consolidated R&D expenditures incurred during the fiscal year 2014 and
2015 were ¥625.6 billion and ¥670.3 billion, respectively.
R&D activities by segment are as follows.
Motorcycle Business
In the Motorcycle business segment, Honda is aiming to deliver appealing products
in a timely manner that offer outstanding environmental performance and that will
enable customers to experience the joy of ownership. To this end, we prioritized
initiatives designed to bolster product appeal, strengthen cost competitiveness,
quicken the pace of product and technology development, and respond to the
demands of a low-carbon society.
Among major technological achievements, the CB UNICORN160, equipped
with a single-cylinder 160cc air-cooled engine to realize enhanced fuel economy
and power output, was launched in India. In Brazil, the NXR160Bros was
launched, equipped with this engine.
In addition, the eSP engine series, a global engine for scooters that combines
high fuel economy and a refreshing driving experience, was launched by mounting
the 50cc water-cooled eSP engine on Tact, and the 110cc air-cooled eSP engine
on Dio110 for launch in Japan and VISION for launch in Vietnam.
Furthermore, the Forza125 was launched with greater power output, while
maintaining high fuel economy, by transforming the 125cc water-cooled eSP
engine into a four-valve engine.
The VFR800X, equipped with a DOHC V4 800cc water-cooled four-stroke
engine, aimed to provide enjoyable handling and comfortable driving for both
around town and long-distance touring, as well as the GOLDWING F6C, equipped
with a horizontally-opposed six-cylinder 1800cc engine to add greater impact and
presence to its design, were also launched.
R&D expenditures in this segment incurred during the fiscal year 2014 and
2015 were ¥72.3 billion and ¥73.7 billion, respectively.
In terms of major race results, Honda won the rider, constructor and team
divisions to become a triple-crown champion in MotoGP-class motorcycle racing
for the second consecutive year.
Automobile Business
In the automobile business segment, Honda’s aim is to become the premier
manufacturer of interesting, cleverly designed cars that enable customers to
experience the joy of driving. The overall strategic direction is to “create products
that maximize the joy of customers, with speed, affordability and low CO2.”
Among major technological achievements, Honda launched the LEGEND, which
features a V6 direct injection engine and three electric motors to deliver a combina-
tion of a refined and comfortable ride and outstanding environmental performance,
equipped with the advanced driver-assistive system Honda SENSING, which can
help the driver prevent or effectively respond to dangerous driving situations.
Furthermore, Honda launched the GRACE, which features the easy handling
and excellent fuel economy of a compact vehicle in a 5-number category vehicle,
while realizing a spacious cabin within a compact body. Honda also launched a
sports car, the S660, which adopts a mid-ship engine/rear-wheel drive layout and
realizes a low center-of-gravity as well as an optimal front-rear weight balance, in
order to realize the joy of driving that people associate with Honda.
Yen (billions) (%)
R&D Expenditure/
R&D Expenditure as
a Percentage of Sales
Revenues
* From fiscal 2011 to 2013, the above was
named “R&D Expenses” and stated in
accordance with U.S. GAAP.
Fiscal years ended March 31
R&D Expenditure (left scale)
R&D Expenditure as a Percentage
of Sales Revenues (right scale)
200
600
400
800
0
2
6
4
8
0
11 12 13 14 15
U.S. GAAP IFRS
Honda Motor Co., Ltd. Annual Report 2015 27
6 Financial Section
1 The Power of Dreams
2 Financial Highlights
3 To Our Shareholders
4 Review of Operations
5 Corporate Governance
7
Investor Relations
Information
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